Crypto ETFs Hit by Government Shutdown: The Great Pause in Pseudofinance

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In a plot twist that would make the Jolly Bankers’ Guild blush, the US government has hit the cosmic pause button on a host of operations, including the Securities and Exchange Commission, which was poised to begin approving those much-anticipated spot crypto ETFs. 🕰️

For the fourth time running, spending proposals meant to reopen the nation have been rejected by lawmakers from both sides, leaving the shutdown to nap on the job and pushing any glorious reform into next week. The coffee cups are stacked high, and the general mood is somewhere between “we’ll sort it out” and “please don’t make us fax this again.” 😅

Spot Crypto ETFs On Hold

As Crypto In America reports, during a government shutdown the SEC can still swing into action for fraud and market emergencies, but the rest of the magic show has gone on holiday. It’s a bit like a wizard forgot his wand and decided to mail-order one instead-efficiency, obviously, is not a thing right now. 🪄

This includes delays in processing initial public offerings (IPOs), exchange-traded funds (ETFs), and other filings, as well as pausing rulemaking efforts. The queue for paperwork has more suspense than a dragon’s lunch break, and there’s no guarantee the dragon will remember to breathe fire again anytime soon. 🐉💤

With spot crypto ETFs requiring formal approval from the SEC’s Division of Corporation Finance before they can commence trading, product launches for assets like Litecoin (LTC), Solana (SOL), and XRP are now likely on hold until government funding is restored. It’s the kind of hold that makes a gesturing statue seem decisive. ⏳💸

Nevertheless, altcoin prices enjoyed a surprising revival on Friday, with LTC, SOL and XRP surging by 17%, 16% and 9% respectively over the past seven days. This aligns with the broader crypto market recovery, led by Bitcoin (BTC)’s ascent to near-record highs. 🚀

New Generic Listing Standards

“It’s like a rain delay,” Bloomberg ETF expert Eric Balchunas told Crypto In America, lamenting the industry’s thirst for clarity on the SEC’s operations. An SEC spokesperson also confirmed that the shutdown has hindered their ability to respond to press inquiries. “We’re not ignoring you, we’re just pretending the press is on a longer lunch break.” 😅

The current challenges follow the SEC’s decision for crypto ETF issuers to withdraw their 19b-4 filings. This, on the heels of the approval of generic listing standards that obviate the need for individual filings; as a result, crypto ETFs could potentially go effective on a rolling basis once the shutdown concludes. It’s bureaucracy, but with better pacing and a dash of wishful thinking. 🧭

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2025-10-03 23:14